2020-05-19T14:06:29-05:00 2019-06-30 420714325 RSM US LLP 9801 WASHINGTONIAN BLVD STE 500 GAITHERSBURG MD 20878 990 2018-07-01 540562160 THE POTOMAC SCHOOL POTO 7033564100 1301 POTOMAC SCHOOL ROAD MCLEAN VA 22101 JOHN KOWALIK HEAD OF SCHOOL 7033564100 2020-05-06 1 WILLIAM E TURCO CPA P00369217 3012963600 66.98.98.3 2020-05-06 10:34:16 ED P DA39A3EE5E6B4B0D3255BFEF95601890AFD80709 6C9B1A35775087DBDB8A6D25ECA509C7F6C27838 2018 2020-09-23 17:36:50Z JOHN KOWALIK 1301 POTOMAC SCHOOL ROAD MCLEAN VA 22101 65164308 0 X WWW.POTOMACSCHOOL.ORG X 1907 DC AT THE POTOMAC SCHOOL, WE BELIEVE THAT INTELLECTUAL DEVELOPMENT, LOVE OF LEARNING, AND STRENGTH OF CHARACTER ARE COMPLEMENTARY, AND EQUALLY ESSENTIAL, EDUCATIONAL GOALS. WITH A FIRM COMMITMENT TO OUR CORE VALUES AND A RIGOROUS ACADEMIC PROGRAM, WE PREPARE STUDENTS TO LEAD LIVES OF PURPOSE, ACHIEVEMENT, AND GENEROSITY OF SPIRIT. 23 23 559 1080 35089 0 22013681 7562979 44324963 45323716 695395 1102972 357972 399097 67392011 54388764 4369137 4710043 0 0 26650803 28252672 271165 128900 1961017 14763781 15340366 46054886 48431981 21337125 5956783 185135794 194254754 60995969 63030375 124139825 131224379 X AT THE POTOMAC SCHOOL, WE BELIEVE THAT INTELLECTUAL DEVELOPMENT, LOVE OF LEARNING, AND STRENGTH OF CHARACTER ARE COMPLEMENTARY, AND EQUALLY ESSENTIAL, EDUCATIONAL GOALS. WITH A FIRM COMMITMENT TO OUR CORE VALUES AND A RIGOROUS ACADEMIC PROGRAM, WE PREPARE STUDENTS TO LEAD LIVES OF PURPOSE, ACHIEVEMENT, AND GENEROSITY OF SPIRIT. 0 0 37236820 4710043 43138009 PROVIDING EDUCATION FROM KINDERGARTEN TO THE TWELFTH GRADE FOR APPROXIMATELY 1050 STUDENTS. 2807056 2150618 SUMMER DAY CAMP AND ACADEMIC REVIEW. 40043876 1 1 0 0 0 0 0 0 0 1 1 1 0 0 1 1 1 0 1 0 1 0 0 1 1 0 0 0 1 1 1 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 1 141 1 1 559 1 1 1 0 0 0 0 1 1 0 0 0 0 0 0 X 23 23 1 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 0 VA X DYANA CONROY 7037496320 1301 POTOMAC SCHOOL ROAD MCLEAN VA 22101 MARJORIE P BRENNAN CHAIR 2.00 X X 0 0 0 SAMEER BHARGAVA VICE-CHAIR 2.00 X X 0 0 0 MARY LOUISE LEIPHEIMER SECRETARY 2.00 X X 0 0 0 THOMAS J RIETANO TREASURER 2.00 X X 0 0 0 LYNNE F O'BRIEN TRUSTEE 2.00 X 0 0 0 NATALIE F BUSH TRUSTEE 2.00 X 0 0 0 DOUGLAS M CUMMINGS TRUSTEE 2.00 X 0 0 0 MICHAEL L DAVIS TRUSTEE 2.00 X 0 0 0 ELLEN M DWYER TRUSTEE 2.00 X 0 0 0 DANIEL I FISHER TRUSTEE 2.00 X 0 0 0 JAMES B FLEMING TRUSTEE 2.00 X 0 0 0 STEPHANIE AMANN KAPSIS TRUSTEE 2.00 X 0 0 0 WILLIAM J KILBERG TRUSTEE 2.00 X 0 0 0 TANYA LR LA FORCE TRUSTEE 2.00 X 0 0 0 ROBERT M MCDOWELL TRUSTEE 2.00 X 0 0 0 ROBERT D MOSER TRUSTEE 2.00 X 0 0 0 NORMA C RAMSEY TRUSTEE 2.00 X 0 0 0 JAMES H ROONEY TRUSTEE 2.00 X 0 0 0 ERIC W ROSENTHAL TRUSTEE 2.00 X 0 0 0 SUSAN N SCHIEFFER TRUSTEE 2.00 X 0 0 0 KAREN SONNEBORN TRUSTEE 2.00 X 0 0 0 ABIGAIL SPANGLER TRUSTEE 2.00 X 0 0 0 MARK J SULLIVAN TRUSTEE 2.00 X 0 0 0 JOHN J KOWALIK HEAD OF SCHOOL 60.00 X 625706 0 116829 DYANA CONROY CFO/COO 60.00 X 278970 0 64769 BARBARA OVERSTREET DIRECTOR OF ADVANCEMENT 60.00 X 208398 0 40112 TIMOTHY JAEGER ASSISTANT HEAD OF SCHOOL 50.00 X 192849 0 113377 JOHN MATHEWS HEAD OF THE MIDDLE & INTERMEDIATE SCHOOLS 50.00 X 167442 0 91037 NANCY POWELL HEAD OF LOWER SCHOOL 50.00 X 155942 0 34037 DOUGLAS MCLANE HEAD OF UPPER SCHOOL 50.00 X 160284 0 73296 1789591 0 533457 40 0 1 0 COAKLEY & WILLIAMS CONSTRUCTION INC 7475 WISCONSIN AVE 900 BETHESDA MD 20814 GENERAL CONTRACTOR 6307456 SAGE DINING SERVICES 1402 YORK RD STE 100 LUTHERVILLE MD 21093 FOOD SERVICE 1077871 CANNON WASHINGTON INC DEPARTMENT CHICAGO 19824 PALATINE IL 600559824 ARCHITECTURAL 568902 INTERNETWORKING SOLUTION PROF CONCENTUS PO BOX 400 MCLEAN VA 22101 INFORMATION TECHNOLOGY 246770 DEBEVOISE & PLIMPTON LLP 801 PENNSYLVANIA AVENUE NW WASHINGTON DC 20004 LEGAL 221832 9 796081 6766898 347137 7562979 TUITION 900099 41743731 41743731 SUMMER PROGRAMS 900099 2150618 2150618 TRANSPORTATION 900099 1021662 986573 35089 ENRICHMENT PROGRAM 900099 200182 200182 EXTENDED DAY 900099 127175 127175 80348 80348 45323716 887109 887109 10757249 10541386 215863 215863 215863 385864 796081 175000 210864 210864 93948 59158 34790 34790 OTHER INCOME 900099 153443 153443 153443 54388764 45288627 35089 1502069 4710043 4710043 1032761 870288 117292 45181 20959659 17957790 2109522 892347 1573663 1277073 223668 72922 3149924 2556255 447705 145964 1536665 1329392 146743 60530 354952 215016 113658 26278 63815 38657 20434 4724 128900 128900 24419 24419 1078299 726284 316103 35912 95408 42215 22314 30879 618580 363853 142336 112391 709660 494096 197447 18117 1482946 1036165 409233 37548 330974 330974 533573 355026 30998 147549 1375577 872216 461057 42304 3516295 2229584 1178571 108140 379393 264988 104790 9615 SUMMER PROGRAM 1871247 1871247 DEPARTMENT EXPENSES 1502761 1473143 27129 2489 FOOD AND ENTERTAINMENT 962454 610265 322590 29599 BAD DEBTS 32039 20960 11079 407974 398346 9628 48431981 40043876 6427088 1961017 300 300 44836459 38861228 19790503 13774644 258872 365907 83968 108919 587273 545131 144180502 43442993 80613074 100737509 38647745 39447916 317600 413200 185135794 194254754 4228488 7646884 20946216 21103749 33949416 29600058 1787428 1871849 2892256 60995969 63030375 X 96975233 116801880 24260654 10625446 2903938 3797053 124139825 131224379 185135794 194254754 X 5956783 1987478 -859707 X 0 1 X 1 0 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 49023345 3129335 2445783 4571939 50026524 42885335 4395582 3278736 1536308 49023345 35924093 4185401 4226926 1451085 42885335 35807482 2078381 -32417 1929353 35924093 35280681 396280 692522 562001 35807482 0.92410 0.05980 0.01610 0 0 9754656 9754656 97508747 33055796 64452951 12334023 10387197 1946826 24583076 24583076 100737509 LIMITED PARTNERSHIPS 5152664 C COMMON FUND INVESTMENTS 34295252 F 39447916 DEFERRED COMPENSATION 383300 INTEREST RATE SWAP AGREEMENT 2508956 2892256 X 51705636 1987478 -4705345 -2717867 54423503 24419 -59158 -34739 54388764 43761375 59158 59158 43702217 24419 4705345 4729764 48431981 PART V, LINE 4: ENDOWMENT FUNDS ARE USED TO PROVIDE FINANCIAL AID, PURCHASE LIBRARY BOOKS, FRAME STUDENT ARTWORK, FUND COMMUNITY SERVICE, FACULTY SALARIES AND ENRICHMENT, SCIENCE PROGRAMS, THEATER AND MUSIC, AND GLOBAL STUDIES. PART X, LINE 2: THE SCHOOL IS GENERALLY EXEMPT FROM FEDERAL INCOME TAXES UNDER THE PROVISIONS OF SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE. IN ADDITION, THE SCHOOL QUALIFIES FOR CHARITABLE CONTRIBUTIONS DEDUCTIONS AND HAS BEEN CLASSIFIED AS AN ORGANIZATION THAT IS NOT A PRIVATE FOUNDATION. BUSINESS INCOME WHICH IS NOT RELATED TO EXEMPT PURPOSES, LESS APPLICABLE DEDUCTIONS, IS SUBJECT TO FEDERAL AND STATE CORPORATE INCOME TAXES. FOR THE YEAR ENDED JUNE 30, 2019, THE SCHOOL HAD IMMATERIAL UNRELATED BUSINESS INCOME TAXES AND, ACCORDINGLY, NO PROVISION FOR INCOME TAXES IS REQUIRED IN THE ACCOMPANYING FINANCIAL STATEMENTS. MANAGEMENT EVALUATED THE SCHOOL'S TAX POSITIONS AND CONCLUDED THAT THE SCHOOL HAD TAKEN NO UNCERTAIN TAX POSITIONS THAT REQUIRE ADJUSTMENT TO THE FINANCIAL STATEMENTS. THE SCHOOL FILES INCOME TAX RETURNS IN THE U.S. FEDERAL JURISDICTION. WITH FEW EXCEPTIONS, THE SCHOOL IS NO LONGER SUBJECT TO INCOME TAX EXAMINATIONS BY THE U.S. FEDERAL, STATE OR LOCAL TAX AUTHORITIES FOR YEARS BEFORE 2016. PART XI, LINE 2D - OTHER ADJUSTMENTS: FINANCIAL AID NETTED AGAINST TUITION -4,705,345. PART XI, LINE 4B - OTHER ADJUSTMENTS: COST OF GOODS SOLD REPORTED ON PART VIII, LINE 10B - BOOKSTORE -59,158. PART XII, LINE 2D - OTHER ADJUSTMENTS: COST OF GOODS SOLD REPORTED ON PART VIII, LINE 10B - BOOKSTORE 59,158. PART XII, LINE 4B - OTHER ADJUSTMENTS: FINANCIAL AID NETTED AGAINST TUITION 4,705,345. 1 1 1 1 1 1 1 0 0 0 0 0 0 0 0 0 0 1 SCHEDULE E, PART I, LINE 3 AN ANNOUNCEMENT IS PRINTED IN THE WASHINGTON POST NEWSPAPER. CENTRAL AMERICA AND THE CARIBBEAN 0 0 INVESTMENTS 5257857 0 0 0 0 0 0 5257857 0 5257857 1 0 0 0 0 0 X X X X X 1 GRAHAM-PELTON CONSULTING INC 39 BEECHWOOD RD SUMMIT NJ 07901 FUNDRAISING CONSULTING SERVICES 0 0 128900 -128900 128900 -128900 SPRING AUCTION 1117668 790983 326685 144596 FALL FROLICS CARNIVAL 58036 4300 53736 30404 1 6241 798 5443 0 1181945 796081 385864 175000 175000 210864 1 FINANCIAL AID AWARDS TO STUDENTS 187 4705345 VARIOUS AWARDS TO TEACHERS 2 4698 PART I, LINE 2: THE POTOMAC SCHOOL UTILIZES THE SERVICES OF THE NATIONAL ASSOCIATION OF INDEPENDENT SCHOOLS, STUDENT SCHOLARSHIP SERVICES (SSS), TO HELP EVALUATE EACH STUDENT'S NEEDS FOR FINANCIAL ASSISTANCE. EACH APPLICANT COMPLETES A STANDARDIZED FORM AND AN EVALUATION IS PRODUCED WHICH INCLUDES RECOMMENDATIONS AS TO THE LEVEL OF FINANCIAL ASSISTANCE REQUIRED. THE SCHOOL USES THESE REPORTS AS A GUIDE TO DETERMINE WHICH STUDENTS REQUIRE FINANCIAL ASSISTANCE AND AN ESTIMATE OF THAT NEED. X X 1 1 X X X X 0 1 0 0 0 0 0 1 0 JOHN J KOWALIK HEAD OF SCHOOL 430789 0 0 0 194917 0 20625 0 99349 0 745680 0 0 0 DYANA CONROY CFO/COO 252373 0 0 0 26597 0 38569 0 31419 0 348958 0 0 0 BARBARA OVERSTREET DIRECTOR OF ADVANCEMENT 206447 0 0 0 1951 0 16068 0 26879 0 251345 0 0 0 TIMOTHY JAEGER ASSISTANT HEAD OF SCHOOL 191886 0 0 0 963 0 33957 0 82159 0 308965 0 0 0 JOHN MATHEWS HEAD OF THE MIDDLE & INTERMEDIATE SC 166898 0 0 0 544 0 24072 0 69505 0 261019 0 0 0 NANCY POWELL HEAD OF LOWER SCHOOL 153800 0 0 0 2142 0 16821 0 19599 0 192362 0 0 0 DOUGLAS MCLANE HEAD OF UPPER SCHOOL 157454 0 2500 0 330 0 11368 0 64351 0 236003 0 0 0 PART I, LINE 1A THE SCHOOL COMPENSATES THE HEAD OF SCHOOL AND VARIOUS DEPARTMENT HEADS. THE SCHOOL PROVIDES THE HEAD OF SCHOOL AND VARIOUS DEPARTMENT HEADS WITH HOUSING. THE RENTAL VALUE REFLECTS THE FAIR MARKET VALUE FOR COMPARABLE HOUSES IN THE AREA. THE TRANSACTIONS WERE APPROVED BY THE BOARD OF TRUSTEES WITH ADEQUATE DOCUMENTATION. FOLLOWING EMPLOYEES RECEIVED NONTAXABLE HOUSING ALLOWANCE: JOHN KOWALIK - $68,979 TIMOTHY JAEGER - $55,376 JOHN MATHEWS - $41,421 DOUGLAS MCLANE - $41,421 PART I, LINE 4B FOLLOWING EMPLOYEES PARTICIPATE IN A SUPPLEMENTAL NONQUALIFIED RETIREMENT PLAN 457(F) AND THE SCHOOL CONTRIBUTED FOLLOWING AMOUNTS DURING THE CALENDAR YEAR. DYANA CONROY - $20,000 TIMOTHY JAEGER - $20,000 JOHN MATHEWS - $10,000 PART I, LINE 7 A PERFORMANCE BONUS WAS PAID DURING THE CALENDAR YEAR 2018. A FAIRFAX COUNTY ECONOMIC DEVELOPMENT AUTHORITY 540787833 2004-07-12 16430000 REDEMPTION OF PRIOR BONDS AND SCHOOL CONSTRUCTION 0 0 0 B FAIRFAX COUNTY ECONOMIC DEVELOPMENT AUTHORITY 540787833 2005-08-04 20570000 CONSTRUCTION OF NEW UPPER SCHOOL BUILDING 0 0 0 C FAIRFAX COUNTY ECONOMIC DEVELOPMENT AUTHORITY 540787833 2012-09-07 9500000 REFINANCING PRIOR LOAN AND SCHOOL CONSTRUCTION 0 0 0 A 5295350 16430000 16430000 2004 1 0 1 1 B 6070627 20570000 20570000 2006 0 0 1 1 C 5236877 9500000 9500000 2013 0 0 1 1 A 0 0 0 0 0.00000 0.00000 0.00000 0 0 1 B 0 0 0 0 0.00000 0.00000 0.00000 0 0 1 C 0 0 0 0 0.00000 0.00000 0.00000 0 0 1 A 0 0 1 0 0 0 0 0 1 B 0 0 1 0 1 1 PNC BANK 28.000000000000 0 0 0 0 1 C 0 0 1 0 1 1 PNC BANK 12.000000000000 0 0 0 0 1 A 1 B 1 C 1 SCHEDULE K, PART IV, LINE 2C, REBATE NOT YET DUE: NO CALCULATION REQUIRED FOR THE C SERIES DUE TO MEETING REBATE EXCEPTION. X 24 347137 CONFIRMATION FROM BROKER 0 1 0 FORM 990, PART VI, SECTION A, LINE 2 ROBERT MOSER AND SAMEER BHARGAVA - BUSINESS RELATIONSHIP FORM 990, PART VI, SECTION B, LINE 11B THE 990 IS REVIEWED AND APPROVED BY THE AUDIT COMMITTEE. AFTER THAT IT GOES TO THE FULL BOARD FOR REVIEW AND APPROVAL. FORM 990, PART VI, SECTION B, LINE 12C FOR KEY EMPLOYEES: WHERE A POTENTIAL CONFLICT OF INTEREST EXISTS, IT SHALL BE THE RESPONSIBILITY OF THE PERSON INVOLVED OR ANY OTHER PERSON WITH KNOWLEDGE TO NOTIFY THE HEAD OF SCHOOL OF THE CIRCUMSTANCES RESULTING IN THE POTENTIAL CONFLICT SO THAT IT CAN BE COMMUNICATED TO THE BOARD OF TRUSTEES WHO CAN, IN COUNSEL WITH THE HEAD OF SCHOOL, THEN PROVIDE SUCH GUIDANCE AND TAKE SUCH ACTION AS THEY SHALL DEEM APPROPRIATE. THIS STATEMENT SHALL BE SIGNED ANNUALLY BY ALL KEY EMPLOYEES. FOR BOARD OF TRUSTEES: WHERE A POTENTIAL CONFLICT OF INTEREST EXISTS, IT SHALL BE THE RESPONSIBILITY OF THE PERSON INVOLVED OR ANY OTHER PERSON WITH KNOWLEDGE TO NOTIFY THE CHAIR AND VICE CHAIR OF THE BOARD OF TRUSTEES AS WELL AS THE CHAIR OF THE COMMITTEE ON TRUSTEES OF THE CIRCUMSTANCES RESULTING IN THE POTENTIAL CONFLICT SO THAT THE BOARD OF TRUSTEES CAN PROVIDE SUCH GUIDANCE AND TAKE SUCH ACTION AS IT SHALL DEEM APPROPRIATE. THIS STATEMENT SHALL BE SIGNED ANNUALLY BY ALL TRUSTEES. FORM 990, PART VI, SECTION B, LINE 15 THE COMPENSATION COMMITTEE REVIEWS AND DISCUSSES THE TOTAL COMPENSATION PACKAGES OF THE HEAD OF SCHOOL AND SCHOOL ADMINISTRATORS. SALARY INFORMATION ONLY FOR SIMILAR POSITIONS FROM COMPARABLE SCHOOLS ARE USED TO ESTABLISH A REASONABLE COMPENSATION. THE COMMITTEE HAS THE AUTHORITY TO APPROVE THE COMPENSATION PACKAGE OF THE HEAD OF SCHOOL AND SCHOOL ADMINISTRATORS ON AN ANNUAL BASIS. FORM 990, PART VI, SECTION C, LINE 19 A PUBLIC INSPECTION FILE IS MAINTAINED ONSITE THAT INCLUDES THE 990, GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS. FORM 990, PART XI, LINE 9: UNREALIZED LOSS ON SWAPS -859,707.